Frankly, it would be fair to say that bears have brutalized the crypto market and its constituents in 2018, throwing Bitcoin and its altcoin brethren off metaphorical cliffs.
However, in spite of the widespread carnage, some innovators remain tunnel-visioned, focused on bolstering the nascent crypto and blockchain ecosystem with no holds barred.
Regulatory Fears Remain, but Galaxy Digital Bets on “Big Adaptation”
Speaking on a conference call Friday, presumably to address his firm’s dismal financial report, Mike Novogratz, Galaxy Digital CEO, did his utmost best to maintain an upbeat tone.
As noted by Bloomberg, who received a transcript of the call, Novogratz, a former traditionalist banker-turned-Bitcoin fanatic, couldn’t avoid talk of the bear market, explaining that this year has been “horrible” for tokens. The cryptocurrency advocate added that “there’s plenty of reasons to be depressed,” failing to adequately sugar coat the downturn in cryptocurrency values and the retail interest dry spell.
Touching on the proposed catalysts behind the sell-off, which left Galaxy Digital high and dry with $76 million in Q3 losses, Novogratz pointed to the U.S. Securities and Exchange Commission’s (SEC’s) renewed crackdown on inital coin offerings (ICOs) and fraudulent crypto-centric startups.
While also discussing his firm’s financial condition, he elaborated:
“And not just was [the SEC] tough on them — [but] they mentioned personal investors can go for reparations in most cases. And people got very nervous… We [at Galaxy Digital,] found that getting the right regulatory structure was just harder than we thought it would be.”
The zealous pundit is likely referencing the SEC’s recent case involving AirFox and ParagonCoin, two lesser-known, yet successful ICO-funded projects that were charged for touting digital securities without proper credentials.
Still, Novogratz’s bullish long-term outlook on cryptocurrencies remained steadfast, claiming that he expects a fundamental shift in the utilization of blockchain technologies during 2019 and 2020. More specifically, the former Goldman Sachs partner drew attention to blockchain-based items, such as e-gaming collectibles, that could single-handedly catalyze the adoption of this literally game-changing innovation.
Putting his money where his mouth is, so to speak, Novogratz added that Galaxy Digital, a Toronto-listed, crypto-centric merchant bank, is “making big investments in that area” specifically.
Novogratz: Institutions to Buy Crypto, Bitcoin En-Masse in Q2 2019
Echoing forecasts issued by other industry insiders, in the aforementioned conference call, the forward-thinker stated outright that Bitcoin will likely undergo a monumental rebound in Q2 2019, subsequently backing his essential dice throw with prospective bullish factors.
The Galaxy chief explained that now that the participants of 2017’s retail mania have capitulated, this market is stuck between a rock and a hard place, and is awaiting the arrival of institutional participants.
Although this statement was nebulous in and of itself, Novogratz added that such adoption could arrive by April, following the launch of Bakkt’s physically-backed Bitcoin futures and Fidelity’s custody and trade-execution products.
These recent claims are essentially a reiteration of his incessant statements regarding the “institutional herd” and the “FOMO” that said group will inevitably experience.
Per previous reports from NewsBTC, in early-November, Novogratz told Financial News that “institutional FOMO” will catapult Bitcoin above $10,000, before a likely retesting of the asset’s all-time highs backed by the deep pockets of institutions.
And with that in mind, it should come as no surprise that Novogratz unequivocally sees a bright future for this industry, which has been battered and bruised since January 2018. Bitcoin, for one, was called dead for the 327th time just last Thursday, by none other than a foreboding Bloomberg video.
But if what Novogratz touts comes to pass, mainstream media outlets and the out-of-touch will find no reason to bash crypto assets any further.
Featured image from Shutterstock.